Correlation Between Nok Airlines and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Aegean Airlines at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nok Airlines and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nok Airlines Public and Aegean Airlines SA, you can compare the effects of market volatilities on Nok Airlines and Aegean Airlines and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nok Airlines with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Aegean Airlines.
Diversification Opportunities for Nok Airlines and Aegean Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Aegean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and Nok Airlines is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nok Airlines Public are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Nok Airlines i.e., Nok Airlines and Aegean Airlines go up and down completely randomly.
Pair Corralation between Nok Airlines and Aegean Airlines
If you would invest 532.00 in Aegean Airlines SA on August 24, 2024 and sell it today you would earn a total of 553.00 from holding Aegean Airlines SA or generate 103.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nok Airlines Public vs. Aegean Airlines SA
Performance |
| Timeline |
| Nok Airlines Public |
| Aegean Airlines SA |
Nok Airlines and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Aegean Airlines
The main advantage of trading using opposite Nok Airlines and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Aegean Airlines can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| Nok Airlines vs. easyJet plc | Nok Airlines vs. Norse Atlantic ASA | Nok Airlines vs. Air New Zealand | Nok Airlines vs. Air China Limited |
| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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